Newton Grove residents are not expected to see an increase in their tax rate for the 2026-27 budget year, but, like citizens in most other local municipalities, are likely to see a hike in their water and sewer rates.
A one percent hike in those rates, which equates to about $1 to $1.50 on most residential bills, is part of the proposed fiscal plan the Newton Grove Board of Commissioners is mulling. The tax rate is proposed to stay at 40 cent per $100 valuation.
The one percent increase in the rates is the second consecutive year there’s been a rate hike, following a three percent increase that occurred for the 2025-26 fiscal year. These were the only fees proposed in the budget that would potentially change from the last fiscal year.
“A few years ago, we had to go up tremendously on water, because it had not been done in the years past,” Newton Grove Town Clerk Amanda Baggett explained durng the town May 4 meeting, which included discussion on the budget.
“With us getting ready to contract with the county (Sheriff’s Office), we are able to save a little bit of money in our general fund, so we’ve been able to take most of Dana Ellington’s (deputy clerk) salary and a couple of other things out of water and sewer, and to be paid out of our general fund. We’re supposed to go up every year; North Carolina Rural Water recommended a five percent increase each year. I recommended a one percent increase this year. With all those other things coming out (of general fund instead), we save money. It shows the difference. It’s (the increase) about 30 cents or more, so yor water bill may go up by a $1 or $1.50. Those are the only fees that have changed.”
In a follow-up interview last Thursday, Baggett explained the history behind the lower rates and why it had caused issues. At one point, the town wasn’t bringing in enough funds from its water and sewer, she said, landing Newton Grove on a Unit Assistance List (UAL). The list is used by North Carolina’s Local Government Council in order to step in to oversee the financial issues that a town municipality is having.
”About four to five years ago, North Carolina Rural Water came in and did a report, because our rates were very low, and we were in a huge deficit,” she emphasized. “We were put on a Unit Assistance List because not enough funds were coming in to cover the costs. The rates were voted on by the board for the last several years. I also did a audit, where a lot of people weren’t being charged for consumption. They were being charged for service, but not consumption.”
While putting together the budget, Baggett realized the town was also budgeting $45,000 of water and sewer funds for a contract with the county to purchase water.
“I worked with this administration to remove the $45,000 per year contract to buy water from the county,” she said. “That (contract) had been going on for over 10 years that we never used one drop of water. So that money per year was coming out of water and sewer for nothing. We do still have the ability to purchase water from Sampson County, so we’ve only budgeted $5,000. In the past two years that we’ve budgeted, we’ve not used any of it (water from the county). The only way I foresee us having to use it is if they drain the tower for our water tower repairs and maintenance program. We may would have to use Sampson County as a water source for that time that it’s drained.”
According to Baggett, the money saved, along with savings they could incur by contracting with the county Sheriff’s Office for law enforcement coverage, was allocated to give the Newton Grove Fire Department some of the increase members have been seeking for through a fire contract. The amount ($19,000) was used to increase the contract between the town and the fire department, taking them from $46,000 to $65,000 for three years. It’s important to note the $65,000 amount for three years is the town’s proposal for a fire contract within the town’s fiscal year of 2026-27. The fire department is seeking a three-year contract that would see them paid $65,000 for the first year, with 15 percent increases for the final two years of the contract in 2027-28 ($74,750) and 2028-29 ($85,962). Newton Grove and its fire department have been at an impasse over terms within a proposed contract.
“That’s where we were able to find the $19,000 to give an additional 41 percent increase to what the fire department was getting,” Baggett explained. “We were also able to move some other things out of water and sewer that could be paid for by the general fund to keep from raising these rates. The people in Newton Grove, the water and sewer is killing them; it’s killing everybody. We have to look at it as a whole picture. We have to take care of the library here. We don’t pay their income, but we do their repairs and maintenance. That’s our building, we have this town hall, we have an entire waste water treatment system. They’re two separate funds, but if you can take anything out of water and sewer legally and pay for it out of general fund, that’s the best way to do it, because your biggest expense is your water and sewer, but you don’t want to continue to bill your people to death. That’s why I tried to put in one percent, because we were able to move the majority of Dana’s salary out of that, and into the general fund.”
Baggett also doubled down on that being the specific reason the town was trying to keep the tax rate the same for the next fiscal year.
“We’re trying very hard not to tax the people,” Baggett said. “People in Newton Grown pay 68 cents to Sampson County and they also turn around and pay 40 cents to the town, totalling $1.08, that’s for the citizens, versus the residents outside the city limits. They’re only paying .68 cents plus the seven and a half fire tax, which equals 75.5 cents. You see the difference? The people in Newton Grove are already taxed enough.”
For the budget general fund, the town of Newton Grove is expecting $748,000 for the 2026-27 fiscal year. The town board will hold a public meeting Monday, June 8. After that hearing, they are expected to adopt the budget.